Improving the Marketing System Performance of Fruits and Vegetables in Bangladesh

Improving the Marketing System Performance of Fruits and Vegetables in Bangladesh

Department of HorticultureBangladesh Agricultural University

Professor Dr. Md. Kamrul Hassan

Research TeamPrincipal Investigator

Professor Dr. Md. Kamrul Hassan

Department of Horticulture, BAU, Mymensingh

Co-Investigator

Professor Dr. Shankar Kumar Raha

Department of Agribusiness & Marketing

Bangladesh Agricultural University, Mymensingh

Research Assistant

Nasrin Akhther

Research Fellows

Five Research Fellows

Research Team

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MyanmarCambodia

PakistanPhilippinesIndonesia

ThailandSri Lanka

NepalChina

MalaysiaIndia

JapanMaldives

Saudia ArabiaAustralia

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IndonesiaChinaJapan

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PakistanMyanmarSri Lanka

SudanCambodia

Bangladesh Research Background

Fruits Rice

APPERENT CONSUMPTION OF FRUITS AND RICE

Fruits & vegetables requirement: 400 g day-1capita-1

Fruits & vegetables availability: 281 g day-1capita-1

Postharvest loss: 24-44% (34420 million BDT = 490 million US$) (Hassan 2010)

Research Background

UNHYGENIC MARKET CONDITIONS (KARWAN BAZAR, DHAKA)

Mango

Jackfruit

Banana

Coconut

Watermelon

Pineapple

Citrus

Papaya Ber Litchi

PotatoBrinjal

Radish

ArumCabbage

PumpkinCauliflower

TomatoWatergourd

BeansPointed gourd

Snake gourdCucumber

Ribbed goudOkra

Selected Commodities and Objectives

Vegetable area (2010) Fruit area (2010)

1

2

3

OBJECTIVES AND SELECTED FRUITS AND VEGETABLES

65%

7% 24%

14%

2%

1

2

3

Approaches and Methodology

Approaches & methodologies Secondary data Primary survey

SELECTED DISTRICTS FOR PRIMARY SURVEY

Secondary data collectionSecondary data on acreage, production, prices of the

selected commodity (potato, brinjal, okra, banana and mango) and important cereals (rice, wheat and maize) were collected.

Time Series Analysis was used to examine changes in acreage, production and prices (nominal and real)

Seasonal price variation was calculated using Moving Average Method

Primary data collectionPrimary data were collected from market actors

using FGD and questionnaire interview.Data were collected by trained enumerators and

Research FellowsData collection from growersStratified random sampling were followed Leading 1-2 Districts for each commodity were

selected Selected growers (N=100 per commodity) were

interviewed using structured questionnaires

Data collection from intermediaries Respondents were Faria, Bepari, Aratdar, wholesalers, retailers Faria & Bepari were interviewed from assemble markets (N=100) Aratdar & wholesalers were interviewed from wholesale markets

(N=100) Retailers were interviewed from retail markets in Dhaka and also

in production area (N=100) Data collection mainly concentrated on personal information,

trade volume, marketing costs, purchase & sale prices, price formation, constraints, etc.

Methodology (Data Collection)

DATA COLLECTION & TRAINING OF ENUMERATORDATA COLLECTION & TRAINING OF ENUMERATOR

Results-Potato (Primary)

Commodities Respondents Survey areas

Potato Growers, Faria, Bepari Munshigonj, Bogra

Brinjal Growers, Faria, Bepari Norshingdi, Jessore

Okra Growers, Faria, Bepari Comilla, Chittagong

Mango Growers, Faria, Bepari Chapai Nowabgonj, Rajshahi

Banana Growers, Faria, Bepari Tangail, Kushtia

Potato, brinjal, okra, mango, banana

Aratdar, wholesalers, retailers Dhaka

LOCATION OF PRIMARY SURVEY

At growers’ levelData were mainly collected on age, education, land,

cultivated varieties, production factors, production and marketing costs, sale price, price formation, constraints, etc.

At intermediary levelMarketing channels, market actor, marketing costs and

margins, price determination, postharvest handling status, marketing constraints, etc.

Marketing performance was evaluated using different

measures of marketing efficiency

Parameters investigated

Methodology-Marketing Performance

a. Price spread

= (Price paid by consumers – Price received by growers)

b. Growers’ share= (Price received by the growers/Consumers price)*100

c. Marketing efficiency using Acharya’s formula= FP/(MC+MM) Total Marketing Cost (MC) Net Marketing Margin (MM) Prices Received by the Farmers (FP)

d. Return on investment, ROC (%)

= (Net margin/Total investment) Total investment = (Purchase price + marketing cost)

Methodology-Marketing Performance

Results: Rice (Only Secondary Data)

GLOBAL RANKING IN RICE PRODUCTION

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Pric

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k/kg

)

Retail medium (nominal)Retail medium (deflated)

PRICE VARIATION IN BANGLADESH

104105

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9696

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99100

y = 0.1746x2 - 2.6774x + 107.95R² = 0.6674

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108

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pric

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CV: 2.96%

SEASONALITY IN RICE PRICE (2000-01 to 2010-11)

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100

y = 0.0712x2 - 1.0584x + 103.03R² = 0.5712

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Jan Mar May Jul Sep Nov

CV: 1.22%

Wholesale price

Retail price


SEASONALITY

PRODUCTION & PRICE

CV: 3.68%

104104

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9595 96

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y = 0.2637x2 - 3.3453x + 107.46R² = 0.6284

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(Who

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CV=3.68%

PRODUCTION AND PRICE RELATIONSHIP & SEASONALITY

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Area (000 ha) Production (000 MT)Nominal harvest price (TK/kg) Nominal wholesale price (TK/kg)Real harvest price (Tk/kg) Real wholesale price (Tk/kg)

SEASONALITY


GLOBAL RANKING IN POTATO PRODUCTION

Results: Potato (Secondary Data)

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Production (000 MT)Nominal retail price (Tk/kg)Real retail price (Tk/kg)

PRODUCTION & PRICE RELATIONSHIP (POTATO)


Results partially support cobweb model

High production in one year causes less price in following year

Potato price did not change over the last decade in real term

Export of potato and potato products

Limitation- absence of HACCP & standards (GAP)

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128126

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128

y = 0.5968x2 - 3.2717x + 88.942R² = 0.5049

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Jan Mar May Jul Sep Nov

Seas

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Months (2004-09)


CV: 24.75%

SEASONALITY IN POTATO WHOLESALE AND RETAIL PRICES

Results on seasonal price variation underlined vital role of potato as a source of macro nutrients because the peak prices of rice & wheat are fairly synchronized but potato is counter synchronized. So, there are scopes to popularize potato and potato products as alternatives to main staples rice and wheat.

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y = -0.015x2 + 3.6458x + 77.114R² = 0.7759

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Jan

Feb

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May Jun Jul

Aug

Sep

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Nov Dec

CV: 14.13%

WHOLESALE

RETAIL

Farmer (early crop, net income 4.87 Tk/kg)

Faria Net margin: 9.81%

Farmer (conventional storage) Feb-May

Farmer (cold store) August-Jan (net income: 8.76 Tk/kg)

Aratdar Net margin: 3.35%

Wholesalers Net margin: 18.66%

Retailers Net margin: 44.26%

Consumers

Processing unit

BepariNet margin: 23.92%

Potato marketing channel (Bogra-Dhaka)Results: Potato (Primary Survey)

POTATO MARKETING CHANNEL (BOGRA-DHAKA)

Results: Potato (Primary Survey)

MARKETING COSTS & MARGINS

Retailers receive the highest net margins. However, it is worth to mention that for perishables, retailers assume more risk and their per unit marketing as well as operating costs are higher

Marketing channels Price spread(Tk. kg-1)

Growers’ share (%)

Marketing efficiency

Bogra-Dhaka ChannelShibgonj-Karwan Bazar 6.30 54.35 0.816Shibgonj-Jatrabari 7.50 50.00 0.794Shibgonj-Mohakhali Kacha Bazar 7.50 50.00 0.727Shibgonj-Gulshan D.C.C. Market 13.50 35.71 0.695Shibgonj-Badda Kacha Bazar 5.75 56.60 0.824Kahalu-Karwan Bazar 6.30 54.35 0.819Kahalu-Jatrabari 7.50 50.00 0.807Kahalu-Mohakhali Kacha Bazar 7.50 50.00 0.776Kahalu-Gulshan D.C.C. Market 13.50 35.71 0.709Kahalu-Badda Kacha Bazar 5.75 56.60 0.842

Mean 8.11 49.33 0.781Munshigonj-Dhaka ChannelMunshigonj Sadar-Karwan Bazar 2.12 84.64 1.094Munshigonj Sadar-Jatrabari 3.32 77.87 1.161Munshigonj Sadar-Mohakhali Kacha Bazar 3.32 77.87 1.004Munshigonj Sadar-Gulshan D.C.C. Market 9.32 55.62 0.996Munshigonj Sadar-Badda Kacha Bazar 1.57 88.15 1.190Tongibari-Karwan Bazar 4.03 70.80 1.260Tongibari-Jatrabari 5.23 65.13 1.300Tongibari-Mohakhali Kacha Bazar 5.23 65.13 1.190Tongibari-Gulshan D.C.C. Market 11.23 46.52 1.160Tongibari-Badda Kacha Bazar 3.48 73.74 1.210

Mean 4.89 70.55 1.157


Month (2012)


FARMERS’ PRICE OF DIFFERENT VARIETIES OF POTATO (2012)

POSTHARVEST OPERATION: WASHING (EARLY CROP)


POSTHARVEST OPERATION: LOADING (80 kg )


Sequential steps of storing of potatoes in commercial cold storageSequential steps of storing of potatoes in commercial cold storage

Pre-cooling(10-12oC 24-48 h or no pre-cooling but held under shade for 24 h and store

Storing

(2.2-2.8oC and 85-90% RH; Mar-Jan)

Pre-heating (48 h at 10-12oC for 24-48 h before delivery; Aug-Jan)

Normal (For table purposes (Aug-January)

Sorting shade (8 h drying under fan at normal condition before delivery; June-January)

Marketing(Table potato: Aug-Jan & Seed potato: October)

Growers(Field cured potato tubers)


Private cold store

BADC Cold store

Traditional storage

SEQUENTIAL STEPS OF STORING POTATOES IN COMMERCIAL COLD STORES

Shortfalls in potato cold stores 1. Erratic supply of electricity: For table potato, temperature and

RH should be 35-37oF and 85-95%. Machine should operate for 17-18 h day-1 but present electricity supply is for 10-12 h day-1. For rest of the day, generator is used at a cost of approx. 100 L diesel h-1. To avoid this cost, often generator is not run or run for shorter duration that results in degraded quality.

2. Physiological disorders: Ventilation or flushing with fresh air is required. This helps reduce carbon dioxide build up inside cold store and inhibit sprouting. This is practiced in the dawn or early morning. Sometimes this is not done to save labour.

3. Less turn over: Another important practice in cold store is change in position of potato sacks (turn over or “Palat”) every 21-28 days. Again this practice is not properly followed to save cost.


Improving cold storage facilities in Bangladesh1. Improving the conditions of electric supply 2. Safeguarding the interests of the growers and traders3. Capacity strengthening of the growers4. Capacity strengthening of the staff of cold storage5. Maintenance of multi-chambered cold storage

Ideal conditions for table & seeds potatoes are 6-10oC and 85-90% and 2-4oC and 85-90% relative humidity, respectively. Therefore, commercial cold store should have different chambers with different temperature & RH conditions.

6. Increasing number of BADC cold storageGrowers have strong demands for more BADC cold stores so that they can store their own seeds for at least 1-2 seasons, and thereby import of potato seed tubers is reduced and hard-earned foreign currencies are saved. The growers also have demand to introduce at least one chamber in each private cold stores specifically for seeds.


y = 61.496e0.0663x

R² = 0.4878

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CV = 35.75

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Harvest (nominal) price (TK/kg)Harvest (real) price (Tk/kg)Retail (nominal) price (TK/kg)Retail (real) price (Tk/kg)

SEASONALITY

PRICE VARIATION

CV: 35.75%

Results: Brinjal (Primary Survey)

PRICE VARIATION AND SEASONALITY IN BRINJALPRICE VARIATION AND SEASONALITY IN BRINJAL

Norshingdi-Dhaka

Farmer

BepariNet margin: 16.77%

Faria Net margin: 10.07%

Aratdar Net margin: 14.73%


RetailersNet margin: 49.64%

Consumers

Farmer

Bepari

Faria

Aratdar (Dhaka)

Wholesalers

Consumers

Aratdar (Jessore)

Jessore (Chougacha)-Dhaka


MARKETING CHANNELS OF BRINJALMARKETING CHANNELS OF BRINJAL

Retailers

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Faria

Bepari (Norshingdi)

Aratdar (Karwan Bazar)

Wholesaler (Karwan Bazar)

Wholesaler (Jatrabari Bazar)

Retailer (Karwan Bazar)

Retailer (Mahakhali Kancha Bazar)

Retailer (Gulshan DCC Market)

Retailer (Badda Kancha Bazar)

Marketing cost (Tk/kg) Net marketing margin (Tk/kg)

MARKETING COST AND MARGINS OF BRINJAL INTERMEDIARIES


Marketing channels Price spread (Tk. Kg-1) Growers’ share (%)

Norshingdi-DhakaBelabo-Karwan Bazar 11.40 64.60Belabo-Jatrabari 12.95 61.63Belabo-Mohakhali Kacha Bazar 12.95 61.63Belabo-Gulshan D.C.C .Market 11.60 64.20Belabo-Badda Kacha Bazar 17.20 54.74Raipura-Karwan Bazar 9.76 69.69Raipura-Jatrabari 11.31 66.49Raipura-Mohakhali Kacha Bazar 11.31 66.49Raipura-Gulshan D.C.C . Market 9.96 69.26Raipura-Badda Kacha Bazar 15.56 59.05

Mean 12.40 63.78Jessore-DhakaChougacha-Karwan Bazar 24.13 25.06Chougacha-Jatrabari 25.68 23.91Chougacha-Mohakhali Kacha Bazar 25.68 23.91Chougacha-Gulshan D.C.C. Market 24.33 24.91Chougacha-Badda Kacha Bazar 29.93 21.24

Mean 25.95 23.81



Marketing channels Marketing efficiency Stdev

Norshingdi-Dhaka

Norshingdi-Karwan Bazar 0.94 0.34

Norshingdi-Jatrabari 0.98 0.71

Norshingdi-Mohakhali Kacha Bazar 0.98 0.38

Norshingdi-Gulshan D.C.C. Market 0.92 0.51

Narshingdi-Badda Kacha Bazar 0.98 0.72

Mean 0.96 0.53Jessore-Dhaka

Chougacha-Karwan Bazar 0.89 0.33

Chougacha-Jatrabari 0.89 0.17

Chougacha-Mohakhali Kacha Bazar 0.83 0.53

Chougacha-Gulshan D.C.C. Market 0.80 0.13

Chougacha-Badda Kacha Bazar 0.84 0.26

Mean 0.69 0.28

CV = 19.90

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Harvest (nominal) price (Tk/kg) Harvest (real) price (Tk/kg)Retail (nominal) price (Tk/kg) Retail (real) price (Tk/kg)

Results: Okra (Primary Survey)

AREA, PRODUCTION AND PRICE VARIATION OF OKRAAREA, PRODUCTION AND PRICE VARIATION OF OKRA

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CV: 35.75%

Results: Okra (Primary Survey)

SEASONALITY IN OKRASEASONALITY IN OKRA

Seasonal price variation in potato is lower due to sufficient cold stores

To reduce seasonal price variation for highly perishables brinjal and okra specialized storage facilities are required

Also refrigerated transport & technologies for shelf life extension are needed.

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Faria (Comilla)

Bepari (Nimshar, Comilla)

Aratdar (Karwan Bazar)

Aratdar (Jatrabari Bazar)

Wholesaler (Karwan Bazar)

Wholesaler (Jatrabari Bazar)

Retailer (Karwan Bazar)

Retailer (Mahakhali Kancha Bazar)

Retailer (Gulshan DCC Market)

Retailer (Badda Kancha Bazar)

Marketing cost (Tk/kg) Net marketing margin (Tk/kg)

Channel (Comilla-Dhaka)

Farmer

Bepari Net margin: 12.75%

Faria Net margin 8.97%

AratdarNet margin: 7.21%


Retailers Net margin: 39.80%

Consumers

Marketing costs and marginsResults: Okra (Primary Survey)

MARKETING CHANNEL & MARKETING COST AND MARGINS (OKRA)MARKETING CHANNEL & MARKETING COST AND MARGINS (OKRA)

Results-Mango (Secondary)

GLOBAL RANKING IN MANGO PRODUCTION IN 2010 (FAOSTAT 2012)GLOBAL RANKING IN MANGO PRODUCTION IN 2010 (FAOSTAT 2012)

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Relationship between area, production and price (nominal and real price of mango in Bangladesh during 2004-05 to 2010-11 (BBS)

Results-Mango (Primary)

HARVESTING TOOLS AND METHODS (BANGLADESH & THAILAND)

Improved packaging (plastic crates) is used for long distance transportation of mango (from assemble market (Kansat, Shibgonj, Chapai Nowabgonj) to city wholesale market (Karwan Bazar, Dhaka). Still, some traders use bamboo basket (bamboo basket with gunny bag top)

Results-Mango (Primary)

Processing

Owners (Give their orchard lease to other trader group or produce by

themselves and subsequently sell to Faria or Bepari

Bepari (25.13%)

Faria (18.95%)

Consumers

Retailer (37.61)

Wholesaler (11.86)

Aratdar (6.45%)

Producers (Produces on leased property as growers and sells mangoes to Faria or Bepari)

Results: Mango (Primary Survey)

MARKETING CHANNEL OF MANGOMARKETING CHANNEL OF MANGO

May Jun Jul Aug Sep May Jun Jul Aug SepFarmers' price Retail price

Khirshapat 35 45 45 50Gopalbhog 35 40 40 45Himsagar 35 40 50 60Langra 40 45 75 80Fazli 55 60 90 70 80 150Bombai 35 30 60 55Ashwini 30 60 90 50 100 150

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MONTHLY PRICE VARIATION (2012)MONTHLY PRICE VARIATION (2012)

2.11.6

2.82.2

1.91.92.2

1.81.6

1.42.6

1.40.6

2.72.8

0.7

1.91.8

1.62.4

2.62.6

0.61.7

1.61.1

3.84.3

3.64.5

4.94.6

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Faria, Rajshahi

Faria, C. Nowabgonj

Bepari, Rajshahi

Bepari, C. Nowabgonj

Aratdar, Karwan Bazar, Dhaka

Aratdar, Jatrabari, Dhaka

Aratdar, Badamtali, Dhaka

Wholesaler, Karwan Bazar, Dhaka

Wholesaler, Jatrabari, Dhaka

Wholesaler, Badamtali, Dhaka

Retailer, Karwan Bazar, Dhaka

Retailer, Jatrabari, Dhaka

Retailer, Badamtali, Dhaka

Retailer, Mahakhalia, Dhaka

Retailer, Gulshan, Dhaka

Retailer, Shambazar, Dhaka

Marketing cost (Tk/kg) Net margin (Tk/kg)


Performance of mango markets (Rajshahi and C. Nowabgonj-Dhaka City)Performance of mango markets (Rajshahi and C. Nowabgonj-Dhaka City)Results: Mango (Primary Survey)

PRESENT PACKAGINGPREVIOUS PACKAGING

Marketing channel Price received by grower (Tk. Kg-1)

Price paid by consumers (Tk. Kg-1)

Price spread (Tk. Kg-1)

Growers’ share (%)

Chapai Nowabgonj-DhakaBholahat-Karwan Bazar 37.72 54.00 16.28 69.85Bholahat-Jatrabari Bazar 37.72 51.00 13.28 73.96Bholahat-Badamtali 37.72 48.00 10.28 78.58Bholahat-Shambazar 37.72 60.00 22.28 62.87Mean 37.72 53.25 15.53 71.32Rajshahi-DhakaBagha-Karwan Bazar 43.40 54.00 10.60 80.37Bagha-Jatrabari Bazar 43.40 51.00 7.60 85.10Bagha-Badamtali 43.40 48.00 4.60 90.42Bagha-Shambazar 43.40 60.00 16.60 72.33Mean 43.40 53.25 9.85 82.05

Marketing channels Marketing efficiency

Stdev

Chapai Nowabgonj-DhakaBholahat-Badamtoli 4.08 1.31Bholahat-Shambazar 4.14 1.04Mean 4.11 1.18Rajshahi-DhakaBagha-Badamtoli 4.35 1.28Bagha-Shambazar 4.21 1.31Mean 4.28 1.30

Acharya’s marketing efficiency of various channels in mango trade (Chapai Nowabgonj-Dhaka and Rajshahi-Dhaka)


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Harvest (nominal) price (Tk/Hali)Harvest (real) price (Tk/Hali)Retail (nominal) price (Tk/Hali)Retail (real) price Tk/Hali

Results-Banana (Secondary)

Seasonality in banana prices (wholesale-Tangail) as a ratio to moving average (Sources: DAM).

Seasonal price variation is pronounced in banana.

Indicates the need to introduce winter fruit species to reduce monthly price variation.

Research is needed for developing fruit varieties for winter season

Results-Banana (Secondary)

FarmMadhupur

Dhaka

Dhaka

Farmer (sells to Faria or Bepari); net profit: Tk. 187.09 bunch-1 of Sabri

Faria (sells to Bepari);Net margin: 6.79%

Consumers

Retailer Karwan Bazar (sells to consumer); Net margin: 33.33%

Wholesaler Karwan Bazar (sells to retailers or consumers); Net margin: 27.13%

Aratdar Karwan Bazar (commission agent);Net margin: 17.52%

Bepari (sells to wholesalers via Aratdar);Net margin: 15.21%

Results-Banana (Primary Survey)


Marketing channels Farmers' price (Tk. bunch-1)

Retail price (Tk. bunch-1)

Price spread (Tk. bunch-1)

Growers share (%)

Acharya’a efficiency

Kushtia-DhakaKushtia-Karwan Bazar 306.36 424.00 117.64 72.25 2.93Kushtia-Jatrabari Bazar 306.36 430.00 123.64 71.25 3.13Kushtia-Mahakhali 306.36 388.00 81.64 78.96 2.85Kushtia-Gulshan D.C.C. 306.36 420.00 113.64 72.94 2.66Mean 306.36 415.50 109.14 73.85 2.89Tangail-DhakaKushtia-Karwan Bazar 248.00 424.00 176.00 58.49 3.17Kushtia-Jatrabari Bazar 248.00 430.00 182.00 57.67 3.08Kushtia-Mahakhali 248.00 388.00 140.00 63.92 2.91Kushtia-Gulshan D.C.C. 248.00 420.00 172.00 59.05 2.86Mean 248.00 415.50 167.50 59.78 3.01

Price spread and growers’ share in marketing channel of banana starting from Tangail and Kushtia to Dhaka city (Variety: Sabri; Price: May 2012)


Policy Implications and Recommendations

1. SAFEGURDING GROWERS’ INTERESTEncourage contract farming to increase growers’ income: Growers’ shares particularly for vegetables are less (Okra: 39.38-43.72%; Brinjal: 23.81-63.78%; Potato: 49.33-70.55). Growers’ shares in fruit marketing are high (Mango: 71.32-82.09%; Banana: 59.78-73.85%). Hence, to elevate growers’ share in vegetables supply chain, contract farming should be encouraged & facilitated as a means of reducing costs of intermediation.


2. MONITORING INTERMEDIARIES IN SUPPLY CHAINUnusually high marketing margins of retailers: Results revealed that net margins of retailers are consistently and unusually higher (33-54% of the total net margins of intermediaries) regardless of the crop. So, regular monitoring and more competition at the retail level, especially in Dhaka city are required.

Price control by organized traders: Control of commodity price is a much-talked issue in marketing. Public perception is that there exists syndicate in market which actually controls prices. Our study revealed that even though there is no visible syndicate but there exists indirect price control mechanism.


3. MAINTENANCE OF QUALITY AND SAFETY IN SUPPLY CHAINQuality and grade standard: Bangladesh lacks standardized quality assurance systems for horticultural produce. Proper arrangement should be made to develop national quality management system to train, and ultimately to accredit, growers and traders in the major international certifications, HACCP, ISO, GAP, GMP. Safe use of chemicals: Delivery of high quality and safe produce to customers is the ultimate goal of efficient marketing. There is public outcry on food safety due to perceived health risk. Therefore, use of recommended pesticides, plant growth regulators & ripening agents must be ensured. Research, training, motivation and strong media campaign are needed to improve the situation.


4. CAPACITY STRENGTHENING IN POSTHARVEST TECHNOLOGYDissemination of appropriate technology: Government may assist disseminate technical information, e.g. cauliflower, broccoli, apples, grapes, etc. can be stored with potato due to compatibility while mango, papaya, banana can’t. This is probably more important than providing improved access to capital.

Optimization of traditional storage technology: Bangladesh is facing tremendous crisis in power sector, and hence different traditional storage methods of perishable fruits and vegetables s would be researched, refined, optimized and extended.


5. IMPROVEMENT OF TRANSPORTATION SYSTEMRelocation of wholesale markets from Dhaka city: Huge wastage occurred due to restricted movement of trucks into Dhaka city. Currently, the trucks are not allowed to enter into Dhaka after 6:00 AM. If a vehicle gets late due to some unforeseen reasons, the entire products are spoiled. Smooth movement of perishables carrying trucks should be ensured to reduce wastage. Therefore, relocation of wholesale markets from the centre of Dhaka city to the nearby places would be considered.


6. IMPROVEMENT OF PACKAGING SYSTEMIntroduction of affordable plastic package: For long-distance transportation, voluminous package made of bamboo baskets & gunny sacks are predominantly used, which result in high spoilage due to impact, vibration & heat generation. Recently, mango traders adopted plastic crates & postharvest loss greatly minimized. It can be used for other high value fruits & vegetables.

Introduction of 50-kg net bags for potato storage: There is strong demand from cold stores to introduce 50-kg plastic net bags replacing 84-kg jute bags to facilitate handling. The presently used 84-kg jute bags are hard to carry by individual labourer, and would be hazardous to their health in longer term.


7. ESTABLISHMENT OF IMPROVED STORAGE FACILITIESPronounced seasonality in fruits & vegetables than cereals: Seasonal price indices are lower in rice (CV 2.96%) and wheat (CV 3.68%) as compared to potato (CV 24.57%), brinjal (CV 35.75%) and okra (CV 32.71%). Lower price variation of rice and wheat is due to less perishability. By contrast, higher price variation of fruits and vegetables is due to high perishability and lack of storage. To reduce seasonal price variation, storage facilities for perishables should be created.


Improvement of power supply: The most important problem in potato cold stores is the paucity of uninterrupted supply of electricity. Uninterrupted electricity supply is required, especially during loading period (March-May). Research to produce alternative energy (conversion of agro-waste to power) should also be given the top priority.Increase the number of BADC cold stores: There is high demands of BADC cold stores, especially for seeds. Presently, there are 18 BADC cold stores and 5 under construction. There are scopes to further increase the number of BADC cold stores. BADC potato seed programme is one of the very few profitable programmes of the Government of Bangladesh. Since, 80% of the potato seeds are farmers own seeds that are held in commercial cold stores the BADC staff may monitor private cold stores and issue certificates of good storage practices.


8. ADOPTION OF MODERN MARKETINGAdoption of modern marketing facilities is required: Adoption of modern facilities in agricultural marketing is important. However, there is a debate on this issue whether modernization can curtail jobs. Trade-off would be a very useful alternative where the extra work force can find better option and contribute to the overall economic development of the country. Introduction of modern loading/unloading equipments: Loading and unloading by manual labour is time consuming, costly and health hazardous. Forklifts can be introduced in the local assemble and big wholesale markets. However, the economic feasibility of the new facility needs to be carefully examined prior to its introduction into Bangladesh.


9. VALUE ADDITION FOR DIVERSIFIED USEValue addition of agro-produce: Use of potatoes could be diversified to safeguard growers’ interest. Various value added products like potato flakes, dried chips, French fries, potato powder, etc. could be produced and used for domestic and international marketing. However, to access mainstream export markets the food enterprises must comply with the application of GMP, GHP and HACCP. Alternative of rice and wheat during peak price months: Result on seasonal price variation underlined the vital role of potato as a source of macro nutrients because the peak prices of rice and wheat were fairly synchronized but potato is counter synchronized to rice and wheat. So, there are ample scope to popularize potato and potato products as the alternatives of rice and wheat.


11. RAPID ACCESS TO MARKET INFORMATIONEasy access to market information: Access to right information on market price and trend in market price is very important. The farmer must be aware about the prevailing prices of commodities. In this regard, board may be used to display daily prices of agricultural commodities in the market. Also DAM can send price information to farmers by SMS.

Upgrading the price data in BBS & DAM: Results of primary survey demonstrated that there exists wide price variation among varieties. However, in the BBS and DAM reports, there are paucity of such valuable details. Therefore, in the BBS & DAM reports harvest, wholesale and retail prices of important varieties should be included. This could ensure better use of market information by the growers, intermediaries, researchers, extension workers and policy makers.

THANK YOU

Date post:	03-Jan-2016
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Improving the Marketing System Performance of Fruits and Vegetables in Bangladesh

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